Transcript of Donatello: How to start up a beverage shop chain in China

4. Conclusion and learningsHow to start up a beverage shop chain in ChinaThe original idea: High quality Coffee ShopAn Italian Starbucks but with high quality food and the so called "Pizza al taglio"

Problems and barriers:

cost of the rent management of fresh ingredients

Shifting the business model: the beverage shopBenefits:Less rent to pay: better location to getNo problem of fresh ingredientsA small take away beverage shop with a wide range of different fresh and tasty drinks at a fair priceThe ConceptThe monthly costsRent: 30.000 RMBStaff: 15.000 RMBSuppliers: 10.000 RMBBills: 5.000 RMBHow do I make Profits?Average price: 12 RMBHow to sell 2.2 drinks per minute?With a damn good location!Main competitorsTaiwanese, Korean and Japanese beverage shopsValue propositionAll the drinks in the same place: coffee, milk tea and fruit juice60.000 RMBRevenues needed to make reasonable profits: 100.000 RMB/monthHow many drinks the shop has to sell?8.333 per month277 per day30 per hour2.2 drinks per minuteYou need the "Guanxi"!2. Why starting up in China and how?Why Shanghai?Having good friends hereContacts with institution and business partnersGood city infrastructure

Why this business?Familiar with Food & Beverage industry when working as a lawyer for the Italian firm“Know how” from his previous clientsComparatively low entry barrier

The process of getting a license is totally different from EuropeTime consuming (6 months)Case by case review, where, who, when, what, etcSmall start-up are not well treated by governmentCannot get a good location

How to start up?Get a business licence!1. The startupper: Donato Mallo Marrone 20052007201227 years oldWorking in an italian law firm in Shanghai25 years oldStart to learn chinese language and law32 years oldQuit his job as a lawyer and start up his companyAfter swimming in a pool, you want to try the sea, no matter if it's more dangerousWhy does he choose to move forward?Key-driven:Passion?Dream?

"If you work in China, after several years: either you go big or you go home!"Under forty, you need to be a RISK-TAKERJanuary 2012Why China?"Nothing is easy, everything is possible"Nothing is easy...Entry barriersLanguage and cultureBusiness environmentHuge competitionDifferent regulation...Everything is possible!Huge demand in China

EU Population + USA Population= 1/2 CH Population

Curiosity of chinese customers

If you are consistent you eventually succeedbut never persist in your mistakes 4. Conclusion and learnings Be consistent, never give upDon't persist in mistakes, understand when to change.Give yourself deadlinesBe not only resistant but also efficientQ&A? 51% LocationThree Businesses at the same timeFood and beverageFashionFootball

More business, more relationships

A friend as a partner for NovantanoveEconomies of scope for realtionshipsOnly limit you have is timeMain focus is Donatello!

But Why?PromotionOnline is big in ChinaTarget costumer: chinese, age between 20-35Decoration: with no brand, impress!Location: still huge importanceFinancingOnly investor is Donato!- 10 years as a lawyer- No investors, no planning needed- No interest to pay